DA AWB Consigned To Collecting Bank

Simple is Beautiful; the only thing came in my mind when thought of documentary collection. And I think more and more people are thinking the same in these days. Documentary Collection offers us far greater security than selling on open account; but not as much as a documentary credit. We should therefore be more cautious before starting selling using this method of payment. Documentary Collection Forum is an effort to help you on this way – admin; besttradesolution.com
Post Reply
TradeLaporte
Posts: 165
Joined: Sat Nov 24, 2012 12:40 pm
First Name: ART
Last Name: TRATADOLIBRE
Organization: Trade Co
Filter: Two Plus Two =: 4
Location: United States

DA AWB Consigned To Collecting Bank

Post by TradeLaporte » Sun Dec 22, 2013 1:03 pm

Dear members
How do you handle a transaction where the AWb is consigned to our bank and the terms are DA ? AWb should not be endorse

User avatar
picant
Posts: 2026
Joined: Wed Aug 20, 2008 1:49 pm

Bank release

Post by picant » Mon Dec 23, 2013 11:31 am

Hi Pal,

a part that a document of transport must not be consigned to a bank without its permission, if it happened a bank will instruct the carrier to deliver the goods to the true destinatary by a bank release. AWB is not negotiable as indicated in the document itsself, so the consignee, a bank, will fill a form addressed to "TO WHOM IT MAY CONCERN" for delivery of cargo.The collection instructions will regulated such delivery, D/P or D/A. In case of D/A, the role of collecting bank is to make the draft accepted by the drawee, and its undertaking is over. The collecting bank may be instructed to hold the accepted draft for payment at maturity or return it to drawers' bank.
I know that, in some Countries, collecting bank is more involved and considered liable for the payment at maturity.
This is outside URC 522, as it is stating that documents may be delivered against acceptance, backed by a bank guarantee.
In Italy, Airlines and forwarders agreed in wording a document that gathers terms and conditions for delivery of goods under a transport document consigned to a bank, LIBERATORIA ABI (release ABI-ITALIAN BANKERS ASSOCIATION)
That's all folk!
Ciao

TradeLaporte
Posts: 165
Joined: Sat Nov 24, 2012 12:40 pm
First Name: ART
Last Name: TRATADOLIBRE
Organization: Trade Co
Filter: Two Plus Two =: 4
Location: United States

Bank release

Post by TradeLaporte » Fri Dec 27, 2013 10:17 pm

Thanks Picant

Your comments are very valuable . Any advice for taking Cdcs certification. I have to be active for about 9 years before retire and I was working for 16 years in systems And since lost the job I am coming back to trade but my employer want us to take this certification . Any hints to get ready for it appreciated it

TradeLaporte
Posts: 165
Joined: Sat Nov 24, 2012 12:40 pm
First Name: ART
Last Name: TRATADOLIBRE
Organization: Trade Co
Filter: Two Plus Two =: 4
Location: United States

is the Collecting bank obligated to pay at maturity

Post by TradeLaporte » Thu Mar 10, 2016 11:01 am

IS a collecting bank endorsed the BL to drawee after acceptance of the bill of exchange . at maturity drawee did not pay is the collecting bank obligated to pay because it endorsed the BL?

Your comments highly appreciated it

User avatar
picant
Posts: 2026
Joined: Wed Aug 20, 2008 1:49 pm

No...

Post by picant » Thu Mar 10, 2016 12:15 pm

Hi Pal,

Art 10 e, URC 522 is quite clear. I know that some banks consider the endorsement as an involving action, so they grant a sort of credit line, but is not so. The Italian Banking Association provided a clause to insert in the endorsement to clear that the bank was only a mean to facilitate this service. However it is better to have a legal advice onhow it works in your Country.
Ciao

Post Reply